Final answer:
A sale resulting in a positive asset balance with no other assets left implies that assets have been streamlined to achieve this positive balance, which in the case of a bank, would reflect in its net worth, suggesting a healthy financial state.
Step-by-step explanation:
If a sale results in a positive asset balance and there are no other assets left, the scenario suggests that all other assets have been converted or liquidated through the sales process to achieve this positive balance. In the context of a bank's balance sheet, a positive asset balance with no other assets implies that the bank's assets have been streamlined, potentially as part of a change in the business plan. T-accounts are used to represent this situation, where the left side shows the assets and the right side displays the liabilities and net worth.
Using Singleton Bank as an example, after altering its business plan, its balance sheet shows $1 million in reserves and a $9 million loan to Hank's Auto Supply as its assets. Despite this, the bank's liabilities, represented by $10 million in deposits, remain unchanged. The T-account must balance, so assets always equal liabilities plus net worth. If there are no other assets or liabilities to consider, and the asset balance is positive, this would typically be reflected in the net worth of the bank, meaning the bank is financially healthy. This scenario suggests that the bank has effectively managed its assets and liabilities to maintain a positive balance sheet.